CLWSC to Buy Clear Water Estates Water System in Canyon Lake
Canyon Lake Water Service Company (CLWSC) plans to buy Clear Water Estates Water System in Canyon Lake.
In a statement, San Jose, California-based SJW Group said its Texas subsidiary SWJTX, also known as CLWSC, already operates the system, which is less than 40-years-old and has no employees.
The acquisition qualifies as a “tuck-in,” with Clear Water Estates Water System bordering CLWSC’s water system to the north and south.
The transaction will not affect the rates or services for customers of either company.
Clear Water Estates Water System provides water to approximately 660 people through 230 service connections in a 400-acre region of Canyon lake.
“We are eager to have the customers of Clear Water Estates Water System join the Canyon Lake Water Service Company,” said Eric Thornburg, president and CEO of SJW Group. “This transaction, if approved by the Public Utilities Commission of Texas, will grow our company and allow for future growth. Customers will benefit by being served by a strong regional company that also has access to national scale and resources to deliver exceptional service and water quality.”
Thomas Hodge, SJWTX president, said Clear Water Estates Water System “has water resources above and beyond what is needed to meet the water needs of its current customers that can be used for future Clear Water Estates Water System growth and the surrounding Canyon Lake community.”
SJW and SJWTX/CLWSC filed an application with the Public Utilities Commission of Texas (PUCT) for approval of the transaction. The companies said it is the first application to the PUCT to request treatment under Texas’s new Fair Market Value legislation.
The new treatment determines the fair-market value of an acquired utility’s rate base, which would be used for future rate-making purposes, according to SWJ Group’s press release.
A decision is expected sometime in early 2021.
If approved, the purchase would become SJWTX’s 13th acquisition since 2006.
Over the past 14 years, SJWTX/CLWSC has nearly tripled in size from 6,500 to 19,000 connections and serves 57,000 people in a 246-square-mile area in Comal, Blanco, Hays and Travis counties.